Slide 1: Cover letter to stock exchanges for AGM presentation
September 26, 2022 The Manager - Listing Department, The General Manager - Listing Department, National Stock Exchange of India Limited, BSE Limited Exchange Plaza, NSE Building, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai- 400 001 Mumbai- 400 051 SYMBOL : POLY
Slide 2: Polyplex Corporation Limited 2021-22 Annual General Meeting of Shareholders
Polyplex Corporation Limited 2021-22 Annual General Meeting of Shareholders September 26, 2022 India - Bazpur India - Khatima USA Thailand Indonesia Ecoblue, Thailand Turkey 1
Slide 3: Polyplex at a Glance
Polyplex at a Glance ◼ Integrated and diversified manufacturer of plastic film substrates including BOPET (thin & thick), BOPP, CPP and Blown PP / PE ◼ Wide offering of specialty, innovative and differentiated products across a variety of packaging, electrical & electronic and other industrial appli
Slide 4: Polyplex Journey so far: Ability to identify & capitalize on opportunities
Polyplex Journey so far: Ability to identify & capitalize on opportunities Trend-Setter With Many ‘Firsts’ in the Industry First in the industry to invest First in the industry First Indian manufacturer in post-consumer and post- to operate 10.6-meter line @ to set up overseas operations industrial
Slide 5: Success Enablers
Success Enablers 1 Global and Integrated Manufacturing Set-up Polyplex is the ONLY 2 Diversified and Differentiated Product Portfolio Player to Combine Key Attributes… Multifarious and Demanding Customer Base Served 3 by an International Sales & Distribution Network …Resulting in Stable and Superior
Slide 6: A Self-Contained Manufacturing & Sales Capability in Each Region
1 A Self-Contained Manufacturing & Sales Capability in Each Region Manufacturing Proximity and an Entrenched Sales & Distribution Network in Major Demand Centers Ensure a Reliable Supply Chain for Customers 7 Manufacturing Facilities In 5 Countries with Multiple Warehouses & Liaison Offices Worldwid
Slide 7: Integrated Manufacturing Capacities Across Geographies
1 Integrated Manufacturing Capacities Across Geographies Ability to Provide a Comprehensive Suite of Products in Each Manufacturing Location Resin Base Films Value Added Films Mechanically PET Film Recycled BOPET BOPET Blown PP / Resin1 Resin2 Thin Thick BOPP CPP PE Metallized Holography Coated3 TMP
Slide 8: Integrated Manufacturing Has Broadened Product Portfolio
1 Integrated Manufacturing Has Broadened Product Portfolio Base Film Lines with Upstream PET Resin Plants and Downstream Capabilities ◼ The only global player with resin plants at all manufacturing locations ◼ Forward integration provides ability to undertake one or more downstream processes on the
Slide 9: Focus on Highly Differentiated Specialty Film Sales
2 Focus on Highly Differentiated Specialty Film Sales Differentiated Product, Application or Customer (D-PAC): Drives Polyplex’s Right to Win in a Competitive Industry Unique value proposition of differentiated products, applications and customers has led to a healthy growth in specialty portfolio ✓
Slide 10: Increasing Contribution of D-PAC Sales
2 Increasing Contribution of D-PAC Sales Continued Increase in D-PAC Volumes… …Resulting in Growth of Incremental1 D-PAC EBITDA KMT (films) Incremental EBITDA for D-PAC ($ / kg) EBITDA ($ million) 0.72 0.70 0.75 0.81 0.98 323 306 274 253 $186 $171 229 $133 233 $115 207 $110 192 $116 $86 $72 94 62 $7
Slide 11: Global and Well-Diversified Customer Base
3 Global and Well-Diversified Customer Base Deep-Rooted Relationships with Key Customers Spanning Over 15+ Years ◼ Tier I supplier to leading global and regional converters who cater to global CPGs / OEMs ◼ Strong manufacturing and distribution capabilities helps capitalize on the increasing prefere
Slide 12: Continued Focus on Operational Efficiencies and Costs
4 Continued Focus on Operational Efficiencies and Costs ◼ Business process continuous improvement and excellence programs — Undertaking several initiatives to improve business processes and optimize costs through continuous improvement in the areas of productivity, wastage, freight, packing, energy
Slide 13: Strong Capacity Utilization
4 Strong Capacity Utilization Polyplex has consistently improved capacity utilization through debottlenecking and outperformed the industry (Thin BOPET Film utilization) 250 99% 100% 99% 99% 101% 200 100% 150 80% 100 80% 82% 82% 80% 60% 50 184 203 229 232 59 - 40% FY19 FY20 FY21 FY22 Q1FY23 Annualis
Slide 14: Pioneer in Sustainable Products and Processes in the Industry
5 Pioneer in Sustainable Products and Processes in the Industry Strong Commitment Towards Sustainability Focused Innovative Solutions ◼ Spearheading post-consumer and post-industrial waste (PIW) recycling in the industry towards achieving the goal of circular economy ◼ Has taken various initiatives
Slide 15: Significant Value Creation Potential Ahead
Significant Value Creation Potential Ahead Self-Funded Business Model with Several Growth Drivers in Place With a net cash positive balance sheet, strong financing capability and a deeply embedded global sales and distribution network, the platform is capable of self-funding investments needed to dr
Slide 16: Financial Performance – Snapshot
Financial Performance – Snapshot India Rating & Research IND AA- (Positive Outlook) Superior Value Creation Over the Years… (Q1 FY 22-23) (FY 21-22) $263mm $52mm $887mm $186mm Revenue# Normalized Normalized EBITDA* Revenue# EBITDA* 20% 21% Normalized 29% Normalized 27% EBITDA* ROCE1 EBITDA* ROCE1 Ma
Slide 17: FY 21-22 Performance Snapshot
FY 21-22 Performance Snapshot YoY Growth (FY 21-22 v/s FY 20-21) Sales Volume 6% (All Films) 3,22,785 MT Sales Revenue 35% 6,607 INR Crores ($ 887 million) Normalized EBITDA 9% 1,382 INR Crores ($ 186 million) PAT (Before Minority) 965 INR Crores ($ 130 million) 12% EPS 181.19 INR/Share 11% Factors
Slide 18: Sustained and Profitable Growth (1/2)
Sustained and Profitable Growth (1/2) Improving Steady Robust Strong Profit Cash Flow Balance Growth Margins Generation Sheet Sales Volume Across All Films (KMT) EBITDA ($mm) and EBITDA Margin (%) & $/kg 8% 12% 6% 7% 18% 21% 26% 21% 20% 0.45 0.49 0.56 0.57 0.61 306 323 253 274 186 171 115 133 87 52
Slide 19: Sustained and Profitable Growth (2/2)
Sustained and Profitable Growth (2/2) Improving Steady Robust Strong Profit Cash Flow Balance Growth Margins Generation Sheet EPS (INR/Share) Dividend Per Share (INR/Share) 132 68 162.57 181.19 31 103.19 88.18 59.58 32 36 20 17 FY19 FY20 FY21 FY22 Q1FY23 FY19 FY20 FY21 FY22 Annualised Normal Dividen
Slide 20: Key Attributes of the Business Model Creates a Natural Hedge Against Industry Volatility
Key Attributes of the Business Model Creates a Natural Hedge Against Industry Volatility Global S&D Network => diversified and fragmented customer base; optimized market mix to improve margins Diversified portfolio Global – local manufacturing with increasing share => cater to local market of D-PAC
Slide 21: Polyplex Has Consistently Generated Superior and Stable Gross Margins
Polyplex Has Consistently Generated Superior and Stable Gross Margins Relative to the Industry VA Stability Polyplex’s strength as a diversified and specialty - focused business enables it to achieve steadier gross margins 1.40 114 120 101 1.20 1.09 1.11 1.10 1.09 100 1.25 1.05 1.05 1.00 1.01 1.03 0
Slide 22: Industry Outlook - Thin BOPET Global Demand (1/2)
Industry Outlook - Thin BOPET Global Demand (1/2) Thin BOPET Film Demand Expected to Stay Resilient and Accounts for 80% of Global BOPET Film Demand Thin BOPET Films Expected to Be the Fastest Growing Segment in the Global BOPET Films Market Global Thin BOPET Film Demand (KMT) 10,000 7.0% 9,000 8,00
Slide 23: Industry Outlook - Thin BOPET Global Capacity (2/2)
Industry Outlook - Thin BOPET Global Capacity (2/2) Upcoming Capacity Additions Expected Capacity in the Industry KTPA ◼ Majority of the new capacity is being installed in low-cost developing countries - China and India, together accounting for ~85% of the total upcoming capacity 7,255 7,274 7,274 7
Slide 24: Investment Under Implementation
Investment Under Implementation Key Investment Rationale ◼ New investment rationale: — High level of confidence owing to established sales and distribution network Base Film Capacity Expansion (i.e., Second BOPET Film and Debottlenecking Resin — Market growth of 10-12 KT p.a. plant) in USA — Availab
Slide 25: Recipient of Prestigious Awards and Accolades Globally
Recipient of Prestigious Awards and Accolades Globally Polyplex has been a recipient of some of the most prestigious awards in the industry, demonstrating its commitment towards becoming a global leader in the industry Best Public Company Prime Minister’s Best Public Company Asia’s Most of 2020 – In
Slide 26: Disclaimer
Disclaimer • This presentation may contain forward-looking statements which are based on the Company’s current expectations and estimates about the industry, management’s beliefs and various other assumptions. These forward-looking statements are subject to various risks, uncertainties and other fac
Slide 27: Thank You
Thank You Polyplex Corporation Limited B-37, Sector-1, NOIDA Distt. Gautam Budh Nagar Uttar Pradesh-201 301 Board:+91.120.2443716-19 Fax:+91.120.2443723 & 24 BSE (scrip code) : 524051 Symbol : PTL NSE (symbol) : POLYPLEX ISIN : INE633B01018 Polyplex India Polyplex Thailand 26